China’s removal of punishing tariffs on Australian wine imports will be celebrated with the popping of corks over the Easter weekend but rebuilding the $1.1 billion trade will take time, an assister minister says.
The Chinese Ministry of Commerce announced late on Thursday it was “no longer necessary” to impose sanctions on Australian wine imports.
They were imposed by Beijing at the height of diplomatic tensions in 2020.
The decision removes one of the last major sanctions on $20 billion worth of Australian exports, with restrictions remaining on lobster and beef.
Assistant Trade Minister Tim Ayres said China’s decision was a result of the “really hard and determined work” put in by his government.
“It is a very welcome development that comes on the back of of the $20 billion worth of impediments to Australian exporters… wine was the biggest final part of that piece,” he told Sky News.
Asked when the Chinese market would recover to its $1.1 billion peak, Senator Ayres said it was going to take time.
“There is an enormous appetite for high quality Australian wine in the Chinese market,” he said.
“I’m expecting to see a rapid take-up where there are existing markets.
“I’m optimistic about how that’s going to proceed, but it’s going to depend on all of these commercial realities.”
Jumping on the removal of tariffs, which came into effect from Friday, the NSW government will roll out events in partnership with the industry to help Australian companies re-enter the market.
NSW Trade Minister Anoulack Chanthivong said China is his state’s largest two-way trading partner.
“We understand that the market has changed, and conditions will be different this time around,” he said.
“Our focus will be to support NSW wineries to understand the new environment, re-enter the market and re-establish export pipelines.”
